Online shopping service Ocado is in the unusual position of facing a growing competitive threat from its key partner.

Waitrose, the supermarket business of the John Lewis Partnership, supplies Ocado with stock, but an agreement not to compete on deliveries within the M25 area - a key region for Ocado - runs out on July 1. Waitrose has now unveiled plans for a major marketing campaign for its online service, its biggest ecommerce project to date. Ocado also faces challenges from rivals Sainsbury, Tesco, Morrisons and Marks & Spencer, all of which are expanding their online activities. Ocado share's lost 4p to 209.7p, and Clive Black at Shore Capital repeated his sell recommendation on the business. He said:

We see Waitrose's expansion into London as a significant challenge to Ocado; Ocado has benefited from an exclusion of Waitrose competition in its largest market to date through a commercial agreement but with the gloves off (and perhaps more significantly no direct financial involvement by John Lewis anymore in Ocado) we assert that trading is likely to become more challenging for the online specialist. We make this assertion because Ocado is effectively a secondary distributor of Waitrose products to our minds and it is far from clear whether many if not most Ocado shoppers only do so because it is selling Waitrose products (commonsense suggests it would be so). Indeed, Waitrose procures and supplies the vast majority of goods to Ocado and so the threat of any shift of trade from Ocado to Waitrose should be considered a demonstrable challenge to our minds at least.

We would expect a gradual build up of trading activity by Waitrose in London not least because it does need to make fulfilment work, something that Ocado has done with some aplomb although we have to say that service levels have not been what they used to be in recent months. We have seen in our personal use more substitutions at Ocado in 2011 than was the case in 2010 and it is not just us, several portfolio managers in London have mentioned such experiences in our conversations as well in recent weeks.

Overall the market regained some of its poise on hopes that Europe's grandees are edging towards an acceptable solution to bail Greece out of its financial crisis. However investors were still nervous about a possible default and the subsequent effect on other Eurozone members such as Portugal and Spain, and indeed the global banking system. So although the FTSE 100 reversed earlier losses, it still only managed a 16.13 point gain to 5714.94. Over a volatile week, dominated by the growing Greek crisis and worries about global growth, the leading index has lost just 50 points but traded in a 180 point range.

Technology stocks were in focus, after poor results from Blackberry maker Research in Motion. Chip maker Arm - which announced the acquisition of US software minnow Obsidian - lost 5.5p to 556p while Imagination Technologies fell 27.4p to 437.7p after analysts at Liberum Capital put a sell recommendation on both businesses. Liberum said:

RIM's problems are partly company specific but are also a reflection of a slowing handset market which is expected to hit companies like Arm and Imagination which have handsets as their biggest market segment.

Imagination was also downgraded by analysts at RBS, who moved from buy to hold and cut their target price from 590p to 450p. They said:

We believe 2012 consensus estimates could be too high as they do not reflect potential market share loss at Samsung to Arm and, more broadly, the fact that Imagination is not used in low/mid-end Android smartphones, which we see as the major growth driver in the next 18 months.

Meanwhile CSR climbed 4.9p to 313p after it renegotiated its controversial deal to buy US digital imaging group Zoran after a deterioration in its target's performance due to the Japanese earthquake and Cisco's decision to stop production of its Flip digital video cameras. CSR has cut the price from $679m to $484m and will now offer some cash as well as shares. As a result CSR will not carry out a proposed share buyback.

Elsewhere Laird, the electronics group which on Thursday rejected a 185p a share offer from US group Cooper Industries, rose 8.4p to 197.3p as it announced a restructuring. It plans to close down its handset antennae business after falling demand from its key customer, that is, Nokia. The company said the closure would be cash positive to the tune of £20m but would result in an impairment charge at the half year. Despite this Laird said its expectations for the year remained unchanged.

Sage slipped 0.7p to 280.1p despite reports the software group could attract attention from a predator such as IBM or Germany's SAP. But many analysts believe a more likely development is the sale of Sage's healthcare business.

Among the mid-caps Dunelm, the homewares retailer, dropped 27.5p to 398.8p as Citigroup began coverage with a hold rating. Citi said:

While Dunelm's fundamentals are attractive, we believe there is little hidden value on offer, and from here we believe industry headwinds drive downside risk to the forecast agenda. Hence our cautious stance and hold rating.

But Aggreko, the temporary power supplier which has been hit recently by competition worries, jumped 45p to £19.11 after Goldman Sachs raised its price target from £24.82 to £25.06, with a buy rating. The bank said:

In our view the recent acquisition by Horizon Acquisition Company of APR Energy – Aggreko's largest competitor - highlights the unfulfilled demand and attractive growth opportunities in the emergency power market. Aggreko's leadership position remains unrivalled given its unique global presence and much larger fleet size. Furthermore we estimate the strength of structural demand for temporary power is such that there is enough scope for both players to continue to enjoy significant growth in the medium term.

SuperGroup added 63p to 900p ahead of an investor day on Monday, and following vague talk of possible bid interest from US group Abercrombie & Fitch. Nick Bubb at Arden said:

Abercrombie & Fitch seemed a rather desperate yarn to discomfort the shorts, but it had some effect in rallying the share price. Obviously, a huge US fashion brand with a market cap of $5.7bn could easily snap up SuperGroup if it wanted to, particularly as the shares are half the price they were a few months ago…but that doesn't mean to say that they will. Management control 64% of the stock and everything depends on their attitude. They have a lot to learn about PR and communications…but we read chief executive Julian Dunkerton as somebody keen to prove his doubters wrong and go on to drive Superdry on to be a global brand, rather than somebody who will give up on PLC life and just be absorbed into a US group. So, Monday's analyst and investor day at HQ in Cheltenham will be both timely and important.

Transport group Stobart rose another 10.3p to 149.5p as investors continued to react to news - first revealed here - that Easyjet planned to begin flights from the company's Southend Airport.